Los Angeles and Beverly Hills Real Estate Market Update: Homebuyers Still Active Amidst Changing Trends
Los Angeles and Beverly Hills Real Estate Market Update: Homebuyers Still Active Amidst Changing Trends | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
While the housing market may have cooled down from the frenzied activity of the last couple of years, it certainly hasn't come to a standstill. In fact, buyer traffic in the market is still robust, and Los Angeles and Beverly Hills are no exceptions to this trend.
The ShowingTime Showing Index, which measures how much buyers are touring homes, reveals some interesting patterns. Looking at the graph below, we can see that there is seasonality in the real estate market. In the last normal years (shown in gray), buyer activity typically peaked in the first half of each year during the spring homebuying season and slowed down towards the end of the year.
However, when the pandemic struck in March 2020 (shown in blue), this trend was disrupted as the market reacted to the uncertainty. Then came the 'unicorn' years of housing (shown in pink) when record-low mortgage rates and soaring buyer demand led to unprecedented activity. Even during this time, seasonal trends persisted, albeit at much higher levels.
Now, in 2023, we are witnessing a slowdown in traffic compared to the previous month and the peak 'unicorn' years. However, it's important to note that this is not a drastic drop in demand. Instead, it is a return to more normal seasonality. As the ShowingTime report explains, showing traffic declined about 10% in May, which is in line with typical seasonal patterns and reflects the market's slow return to normalcy.
To get a closer look, let's examine the graph showing buyer demand in May over the last five years. Despite the slight decline from previous peaks, buyer demand remains robust.
So, what does this mean for homebuyers and sellers in Los Angeles and Beverly Hills? It means that buyers are still actively searching for homes. In fact, they are more active now than they were in May 2022, when higher mortgage rates caused some sticker shock. Additionally, buyer activity today is even stronger than it was in the last normal years, indicating that the market remains vibrant.
However, it's essential to acknowledge that buyer activity could be even more intense if not for the limited supply of homes for sale. The shortage of available properties continues to drive strong demand in many areas, keeping the market active.
In conclusion, if you're a homeowner considering selling your property in Los Angeles or Beverly Hills, don't underestimate the current level of market activity. Many eager buyers are looking to make a purchase right now, and your house could be the perfect match for their needs. To take advantage of the active market, reach out to a real estate professional and start the selling process today.